Top Six Reasons to Invest in Gold

English: 1 oz (Troy ounce) of fine gold Deutsch: Eine Unze Feingold mit Zertifikat (Photo credit: Wikipedia)

 Gold investments is one the most attractive forms of investment and an increasingly large number of people are opting for the option of investing in gold, but before it turns out to be bangwagon affair for you, you need to ask yourself why are you investing in gold? what are my reasons for investing in gold. If you fail to this and clarify your motives for investing then your investments in gold might as well be a failed project for you. So listed below  are six of the most common reason to choose gold as a form of investment.

1 Gold as an Inflation Hedge

Driven by inflation the prices of goods land and equity tend to increase over time. This is brought about by increase in demand forces. The government usually increases the amount of money in circulation, this in turn leads to a rise in personal income, this encourages consumer spending and ultimately leads to economic stimulation. But the adverse effect of this boom is the attendant decrease in purchasing power. The rise in inflation leads to a reciprocal drop in the purchasing power of the dollar.  ... Continue to read.

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